The US is facing a critical period in the exponential growth of debt. How far will we sink before we start swimming, again? One can only wonder what the future holds. Could the nation go into total bankruptcy? This informative graphic contains information about what could happen in coming years.
Granted, the current economic situation in the U.S. is far from great due to an ever-increasing national debt; but when looking at the financial dilemma on a global scale it quickly becomes obvious that other countries are even worse off than America. While they may not be filing a chapter 13 bankruptcy like an individual would in America, these countries are still on the verge of financial emergency.
Here are 14 countries on the verge of bankruptcy, including the U.S.
Many Americans fall within the stats for an average person declaring bankruptcy. Do you? With common causes for filing bankruptcy including income reduction, over-extended credit, and job loss, it seems that no one is safe from the shock waves being sent through the nation. Plus, more and more people are filing both Chapter 7 and Chapter 13 bankruptcy. Even after new laws were passed to make filing more difficult, more than a million people turn to bankruptcy for help each year. Read this infographic to learn more.
Experts may say the recession is officially over, but many Americans are still struggling to stay in their homes. As of August of 2010, one home in America is foreclosed upon every 13 seconds. That adds up to more than 6,000 foreclosures every day.
Certain parts of the country are feeling intense pain. In Nevada, the foreclosure rate is above 1 percent. Florida, Arizona and California aren't far behind, as owners there simply can't afford the mortgages on their homes anymore.
Why so many foreclosures? There are many factors. The unemployment rate has remained high. Property values have dropped leaving many mortgages “underwater” with the outstanding loan costing more than the house is worth. Plus, many people who had adjustable rate mortgages aren't able to keep up with their new, higher rates.
Are you struggling with you mortgage? Have you considered filing bankruptcy to stop foreclosure and protect your home? Is secure home ownership still part of the American dream?
The Unemployment Insurance System is facing its toughest battle with bankruptcy ever recorded, and many states have already lost their individual wars. Take a look at the information, and learn how your state compares to the ten worst cities in the US.
Extended unemployment problems can easily spread. The need for unemployment benefits may place a strain on state and local governments, while the lack of income may force people to file bankruptcy.
At the same time, filing bankruptcy may become easier and more common as the means test adjusts itself to reflect the falling incomes. Based on a state's median income, with so many people out of work the median may drop, making it easier for many people to file Chapter 7 bankruptcy.
This map depicts some of the biggest retail bankruptcy cases since 2008, and how many stores they operated at the time of their bankruptcy filing. The current economic downturn has been particularly harsh on retail shops, causing big brands like Eddie Bauer, Circuit City, K-B Toys and Linens n' Things to file bankruptcy. Holiday sales, which can be 40 percent of a store's annual sales, have been down in recent years. Many of these stores reorganized, but others were forced to shut down entirely and close all of their shops.
Medical bills are the cause of more than 60 percent of all bankruptcy filings in the United States. These unexpected, expensive and often long-term costs can cause serious financial hardships even for the employed and insured. To help protect yourself from filing bankruptcy, learn how medical bills and debts can quickly spiral out of control and leave you financially hurting.
On the verge of the recession business bankruptcy rates and national unemployment levels were steady. But in late 2007, these numbers quickly began to inflate. Businesses across the country filed bankruptcy and in the process, carried away millions of American jobs.
The effects of the recession have been felt in every state, not every economic indicator is felt the same. While states like California and Michigan may get attention for the sheer volume of bankruptcies and other bad news, looking at the per capita bankruptcy rate paints a different picture. This surprising map shows the state resized to reflect total bankruptcy filings from 2008-2009 per 1,000 residents.
Over the last 30 years, medical costs increased significantly faster than other necessities. Thirty years ago, medical costs were on par with housing, food and energy. But while the costs of those basic items grew at about the same rate, the cost of health care quickly outpaced its peers. In some decades, the Consumer Price Index for medical care grew at double the rate of other essential items. Today, the CPI of medical care is 75% higher than the second fastest growing item. As these costs rose, so did the number of Americans filing bankruptcy.
The first half of 2009 was full of economic bad news. In that six month period, a home entered foreclosure every 10 seconds. Meanwhile, a bankruptcy petition was filed every 22 seconds. Together, these statistics show a staggering amount of trouble for American consumers. What?s worse, these numbers continued to rise throughout 2009, even as the recession was declared officially over.